B2B Enterprise Technologies Web Services

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B2B Enterprise TechnologiesWeb Services

• December 21, 2011

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Agenda

• Why are Web Services important?
• Web Services technologies
• Case studies and industry examples

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Why are Web Services Important?

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Many times the standardization of technology has
a more profound impact than its initial invention

• In 1864 William Sellers proposed a uniform
  system for screw threads
• Previously craftsmen locked in customers to their
  custom designs of screws, nuts and bolts
• Interchangeable parts are a key element of mass
  production
• Parts were pre-designed and readily source able
• Railways, electricity, cars, and
  telecommunications adoption were limited by lack
  of standards early on
• Track gauges, voltage levels, pedal functions and
  signal variations limited their potential
• Standards promote more automation, reliability,
  and ease of use
• Sometimes industries realize that rather than
  fighting for the biggest market share, they need
  to work together to increase the size of the
  market

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Web Services technologies build on whats brought
the Internet to where it is today
Web Services Adoption doubles every 6 months??
2003
SOAP Gains Widespread Support
Most major companies have completed Web Services
projects
Major Vendors Back Web Services
2000
SOAP 1.1 Standard
XML Becomes Standard For Data Exchange
SOAP 1.0 Standard
XML Adoption Doubles Every 6 Months
Work On SOAP Begins
1998
XML 1.0 Standard Adopted
Internet As We Know It Emerges
Work On XML Begins
Apache Web Server Released
1994
Standardization Of HTTP
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Web Services use Internet based open standards
for application integration

• Integration Challenges Addressed by Web
  Services
• Large number of legacy applications requiring
  integration to enable straight through electronic
  processing
• Manually entry of data, or data provided through
  incompatible channels
• Hampered ability to present an Enterprise wide
  view due to different business units using
  different technology infrastructures
• Mergers or acquisitions resulting in patchwork
  infrastructures, where the costs and impact of
  integrating are too high
• Implementing new applications or packages
  requires extensive time to integrate with
  existing infrastructure

PEOPLESOFT
.NET
CICS
J2EE
COM
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For the first time almost all major vendors are
adopting open standards for application
integration

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Experts agree they will have a profound impact on
the technology landscape

• The professional services opportunity around Web
  Services-related projects will swell from 329
  million in 2002 to 7.1 billion in 2006,
  representing a compound annual growth rate (CAGR)
  of 116. IDC
• Web Services remains the driver for most of the
  innovation and new thinking in application
  development and deployment. Gartner
• SOAP does for apps what HTML did for content
  makes them available over the Net. Forrester
• Companies will in the future buy their
  information technologies as services provided
  over the Internet rather than owning and
  maintaining all their own hardware and software
  The technology providers are backing up their
  words with massive investments to help create the
  infrastructure. Harvard Business Review

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Web Services Technology

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Web Services are a light-weight, flexible way to
integrate systems using Internet technologies
like HTTP and XML as middleware

• Core technology standards that make up Web
  Services
• Transport protocols to communicate between
  systems - HTTP, SMTP
• Flexible, interoperable way to represent messages
  - XML - Extensible Markup Language
• Protocol to invoke a service on any platform -
  SOAP - Simple Object Access Protocol
• Description of service interface and how to bind
  to them - WSDL - Web Services Definition Language
• Directory of services available that can be
  dynamically located - UDDI - Universal
  Description, Discovery, and Integration

PEOPLESOFT
.NET
CICS
J2EE
COM
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Web Services message processing using a shared
service
Banking Site Microsoft.NET
Browser
XML
SOAP
HTTP
Internet
Server WebSphere OS 390
XML
SOAP
HTTP
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Simplicity and ability to use vendors tools
makes Web Services implementations efficient

• We found that the use of Web services enhances
  business value by reducing the time and cost to
  launch applications, enabling Webification, and,
  potentially, increasing revenue. On average,
  major benefits projected over three years include
  a reduction in costs of 39.7M on an investment
  of 1.8M, 22 faster time to deployment of key
  new applications, and an increase of 47 in
  developer efficiency. IDC 2002
• Because every software vendor will use SOAP, the
  cost of linking in new partners drops by at least
  an order of magnitude. Ariba Supplier Network,
  with its 500 million transactions per month,
  expects SOAP to cut a basic connection cost from
  200,000 to 20,000. Forrester Research 2002

Source Forrester Research, 2002
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Web Services drives the costs out and enables new
partnering opportunities
Request Quote

• Partnering Benefits of Web Services
• Outsourcing partners with currently incompatible
  or expensive infrastructures can be accessed
• Organizations can expose their own services
  easily to other entities, opening up potential
  new revenue streams
• Multiple suppliers can be shopped easily to
  find best prices, service levels or availability

ShopQuote
Find Quote
Provider 1
Provider 2
Display Quote
Provider 3
Outsourced Provider
Execute Order
Order Execution
Customer 1
Manage Position Risk
Customer 2
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Web Services help organizations solve integration
challenges more economically

• Benefits
• Costs less and takes less time to implement than
  proprietary integration technologies
• Permits sharing of business logic and data across
  system silos using a Service Oriented
  Architecture
• Promotes flexibility in enterprise architectures
  through the use of XML and loosely coupled
  services
• Leverages existing IT investments in
  infrastructure and applications
• Requires many skills IT professionals already
  possess
• Enables integration with virtually any platform
• Allows software to be bought/sold as a service
  instead of purchasing and installing software
• Eases outsourcing of business processes by
  lowering cost of integrating with enterprise
  systems

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Several challenges limit use of Web Services in
many areas that will addressed by emerging
standards

• Challenges
• Transactional support is not included in the
  current generation of Web services standards
• There are many places where transactions are not
  required
• Many middleware vendors include transactional
  support
• WS-Transaction will remediate this deficiency
• Guaranteed and once/only once delivery is not
  supported
• Many middleware vendors support reliable
  delivery along with transactions
• WS-Reliability is a standard in the proposal
  stage
• Web services lack an end-to-end security model
• Existing security mechanisms such as SSL and VPN
  can be used
• XML standards for Encryption and Digital
  Certificates have emerged
• WS-Security will unify the XML standards and
  fill gaps in the security model
• XML Firewalls promise to offload security from
  end applications
• Web services specifications of business process
  are emerging
• BPEL4WS is one of several emerging standards
• Some EAI vendors have extended their proprietary
  solutions to use Web Services
• Reliance on XML, which is verbose, creates
  performance challenges
• High volume processing problems should avoid
  using Web Services for now
• Optimized XML parsers are being created

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Creating interoperable standards is a key to the
success of Web Services
WS-I Soap Builders
Oasis W3C
Propose
Ratify Standard
Interoperable Implementations
Vendor Release
Interoperability Testing
Extend Standards
BPEL4WS WS-Transaction WS-Coordination WS-Security
WS-Routing WS-Referral
WSRP SOAP 1.2
WSDL 1.1 UDDI 2.0
SOAP 1.1 XML 1.0
Consider using standards when they reach this
stage of maturity

• Interoperability is a key objective of Web
  Services technologies
• Many Proposals for standards have been made,
  e.g.. WS-Security, but only now are
  implementations achieving widespread
  interoperability at the SOAP level
• Standards work is quite active, but several years
  may be required for some to be accepted,
  interoperable and widely deployed
• Some proposals as standards include WS-Security,
  WS-Inspection, WS-Transaction, WS-Coordination,
  WS-Routing, WS-Referral, BPEL4WS, WSFL (Web
  Services Flow Language), WSXL (Web Services
  Experience Language), WSUI (Web Services User
  Interface), WSRP (Web Services for Remote
  Portals), WSCM (Web Services Component Model),
  WSIL (Web Services Inspection Language)
• New versions of the core standards, UDDI, WSDL,
  SOAP, and XML, are ongoing

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Almost all major vendors are adapting their
products and services to use or promote Web
Services

• Microsoft is marketing .NET as its next
  generation distributed application platform with
  a strong focus on Web Services
• Existing servers are being Web Service enabled --
  Exchange, BizTalk, Commerce, Content
• .NET framework provides a runtime environment and
  tools for their new applications
• Development tools for creating and using Web
  Services are emerging and existing software
  vendors are retrofitting their products for Web
  Services
• Content management systems, portals, EAI tools,
  packaged applications (eg, CRM, ERP, SCM)
• A new generation of vendors are emerging to try
  and establish a leadership position in the market
• Marketing and brand unity are also promoting Web
  Services
• Sun has rebranded iPlanet products and Forte
  tools as SunONE
• IBM rolling up products under the WebSphere brand
• BEA has created a suite of products around its
  WebLogic brand

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Many new or reinvented vendors have emerged to
offer more or fill gaps in major vendor products

• Message control software route requests, assure
  delivery, manage services, and provide message
  warehousing capabilities
• Actional, Confluence, Blue Titan, AmberPoint,
  Flamenco Networks, Westbridge technology
• HP with Openview, IBM with Tivoli, and Microsoft
  with SMS will try to fight them off
• EAI vendors (TIBCO, webMethods, Vitria, etc.)
  also want to play here
• Rapid integration servers allow legacy
  applications to be leveraged without having to
  upgrade them to versions supporting Web Services,
  e.g. SAP, Peoplesoft
• CapeClear, Actional, and Infravio are some
  vendors carving niches
• Major vendors seem content to leave them alone,
  but yield opportunities to new vendors
• Specialists in Web Services security have emerged
  to fill true needs
• Vordel, Sargeva, Systinet, DataPower
• Many of the message control software providers
  also provide security, eg. Actional, Confluence,
  Flamenco Networks, Westbridge technologies
• Major application server vendors (IBM, BEA, MS)
  and SOAP Server specialists also play here
• XML accelerators can drastically reduce SOAP
  message processing
• DataPower, Forum Systems, Reactivity, Sarvega

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Case Studies

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Case Study Z-Tel

• Challenge
• Opportunity to lower costs by allowing customers
  to manage their own account, long distance plan,
  tools to determine best plan, pay bills, and
  trouble tickets via a portal in real-time
• Solution
• Backend systems based on Microsoft platform
  (Windows 2000, COM) while Internet systems had
  standardized on HPs J2EE Application Server
• Benefit
• In less than 90 days, used Web Services to access
  back-end functionality. Created Jump Start kit
  for Apache and .Net integration. Cost of
  servicing customers driven down nearly 20-fold in
  some cases. Call volume drastically reduced
  while leveraging existing systems and increasing
  service levels

Browser
Z-Tel Hosting Center
HP-AS
SOAP HTTP
Microsoft .NET
.NET Interop
COM Based Application
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Multinational Retailer partner integration

• Challenge
• Revenue model based on continuity program and
  referral program. Client had decided to replace
  fulfillment partner with a new one
• Complication
• New backend system ran on NT/IIS while the
  existing front-end ran on ATG Dynamo
• Solution
• Created web services for enrollment, order
  management, rewards and bonus programs, and user
  profile management. Leveraged interfaces with
  old back-end system, based on HTTP-POST, to
  accelerate effort. Tuned interfaces to avoid
  performance pitfalls

Browser
Client Hosting Center
ATG Dynamo
SOAP HTTP
Microsoft .NET
Partner Hosting Center
.NET Interop
COM Based Application
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Case Study Large Hi-Tech Manufacturer

• Solution
• Use Web Services to expose internal applications
• Leverage EAI platform for transactional support,
  reliable delivery, and business process
  automation
• Volumes exceed 25,000 orders a day (400,000
  transactions)

• Challenge
• Streamline internal business process related to
  OEM activities
• Complication
• Many different internal legacy applications
  require coordination in processes
• Flexibility required integrating with
  applications
• High volume transaction support needed

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Industry Example Amazon.com 3rd party shopping
sites

• Challenge
• Amazon has continued to drive revenue through 3rd
  party relationships
• Complication
• Partners have a wide variety of platforms
• Partners vary in size from national retailers to
  mom and pop shops
• Integrating on a one by one basis is expensive
• Solution
• Create a set of Web Services for partners of all
  sizes to access Amazons core shopping platform
• 3rd parties get a cut of all sales
• Web Services provide access to shopping cart and
  catalog
• Over 25,000 developers registered in Web Services
  program since launching 10 months ago

Browser
Amazon Partner Hosting Center
Partner Web Site
SOAP HTTP
Amazon Web Services
Amazon Hosting Center
Amazon Shopping Platform
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Industry Example sforce.com

• Challenge
• Salesforce.com was an ASP survivor, but wanted to
  deepen its connection with customers that wanted
  to integrate its data with their applications
• Customers wants to extend functionality provided
  in highly customized ways
• Complication
• Partners have a wide variety of platforms and
  applications they want to integrate
• Integrating on a one by one basis is expensive
• Solution
• Create a set of Web Services for customers to
  integrate with their applications or build new
  interfaces for mobile devices
• Web Services provide secure access to
  functionality and data
• Customers developers can create customized
  interfaces and integrate with applications
• Partnered with Borland to create tools for rapid
  development use sforce Web Services

Browser
Sforce.com client environment
Customer Application
SOAP HTTP
Sforce.com Web Services
Sforce.com Hosting Center
Sforce.com Application